1. 2. Crew Clothing (CC) sells women\'s resort casual clothing to high-end depar

Question

1.

2.

Crew Clothing (CC) sells women's resort casual clothing to high-end department stores and in its own retail boutiques. CC expects sales for January, February, and March to be $400,000, $460,000, and $480,000, respectively. Twenty percent of CC's sales are cash, with the remainder collected evenly over two months. During December, CC's total sales were $710,000. CC is beginning its budget process and has asked for your help in preparing the cash budget Compute CC's expected cash receipts from customers for each month. January February March Budgeted Cash Receipts

Explanation / Answer

1) Calculate budgeted cash receipt :

2) Budgeted purchase for march = 1300+(800*40%)-(1300*40%)*40 = 44000

January February March Cash sales 80000 92000 96000 Collection from customer December sales 284000 January sales 160000 160000 February sales 184000 184000 March sales 192000 Total budgeted cash receipts 524000 436000 472000

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